 | Greenville is committed to providing strong support for new businesses and current employers who wish to expand their facility and train a knowledgeable workforce. Businesses locating in Greenville's Industrial and Business Parks may be eligible for substantial assistance programs provided through local and state incentive programs. Additionally, Illinois is known for favorable tax treatment of equipment and machinery and does not have an inventory tax.
Greenville Enterprise Zone Incentives
Additional incentives for projects creating a minimum of 200 jobs
Enterprise Zones
Enterprise Zones are among Illinois’ most important tools to stimulate economic growth and neighborhood revitalization. The Enterprise Zone program depends upon a creative partnership between state and local government, businesses, labor and community groups to encourage economic growth in the areas designated as Enterprise Zones. Although the program is administered at the state level by the Department of Commerce and Economic Opportunity (DCEO), its ultimate success depends on the level of local commitment. There are currently 94 Enterprise Zones in Illinois, the maximum number that may be designated according to Illinois law. All offer the same mix of state incentives designed to encourage companies to locate or expand within a zone. In addition, each zone offers distinctive local incentives to enhance business or neighborhood development efforts. Such local incentives include abatement of property taxes on new improvements, homesteading and shopsteading programs, waiver of business licensing and permit fees, streamlined business codes and zoning requirements, and special local financing programs and resources.
How the Greenville, Illinois Enterprise Zone
Can Benefit Your Industrial Project
| PROJECT COSTS |  | ESTIMATED
WHOLE $$ | | | | | Land............................................................................................................................................ | | $100,000 | | New Construction, Renovation or Rehabilitation............................................................... | | $1,000,000 | | Equipment Purchase............................................................................................................... | | $2,900,000 | | TOTAL PROJECT.................................................................................................................... | | $4,000,000 | | | | | | PROJECT SAVINGS | | | | Property Tax Abatement......................................................................................................... | | $29,304 | | Based on equalized assessed valuation (EAV) of $366,300 representing one-third of market value of improvements and land. Tax rate is a combination of county, township, city and school rates figured at an average of $8 per $100 EAV. $29,304 figure represents per year savings. | | | | | Sales Tax Exemption............................................................................................................... | | $25,000 | | Exempts 6 1/4 % state and local sales tax based on materials cost used in construction of $400,000 (assuming cost of materials at 40% of total construction cost). | | | | | EZ Investment Tax Credit........................................................................................................ | | $19,500 | | Figured as .5% of $3,900,000 | | | | | Statewide Investment Tax Credit........................................................................................... | | $19,500 | | Figured as .5% of $3,900,000 | | | | | Jobs Tax Credit......................................................................................................................... | | $10,000 | | Based on $500 credit per employee (example assumes 20 eligible employees). | | | | | FIRST YEAR TOTAL SAVING............................................................................................... | | $103,304 | | | | | Additional Property Tax Abatement | | | | Savings over 6 additional years....................................................................................... | | | $175,824 | | SEVEN YEAR TOTAL SAVINGS.......................................................................................... | | $279,128 |
State Incentives
| Sales Tax Exemption: | | A 6.25 percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. Materials must be permanently affixed to the property and must be purchased locally. | | | | | Enterprise Zone Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption: | | A 6.25 percent state sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on a business making an investment on an Enterprise Zone of at least $5 million that creates a minimum of 200 full-time-equivalent jobs, a business investing at least $40 million in a zone and retaining at least 2,000 jobs, or a business investing at least $40 million in a zone which causes the retention of at least 90 percent of the jobs existing on the date it is certified to receive the exemption. | | | | | Enterprise Zone Utility Tax Exemption: | | A state utility tax exemption on gas, electricity and the Illinois Commerce Commission's administrative charge is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5 million that creates a minimum of 200 full-time-equivalent jobs in Illinois, or an investment of $20 million that retains at least 1,000 full-time-equivalent jobs in Illinois. The majority of the jobs created must be located in the Enterprise Zone where the investment occurs. | | | | | Enterprise Zone Investment Tax Credit: | | A state investment tax credit of 0.5 percent is allowed to a taxpayer who invests in qualified property in a Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular 0.5 percent investment tax credit, which is available throughout the state, and up to 0.5 percent credit for increased employment over the previous year. | | | | | Dividend Income Deduction: | | Individuals, corporations, trusts and estates are not taxed on dividend income from corporations doing substantially all their business in an Enterprise Zone. | | | | | Jobs Tax Credit: | | The Enterprise Zone Jobs Tax Credit allows a business a $500 credit on Illinois income taxes for each job created in the Zone for which a certified eligible worker is hired. The credit may be carried forward for up to five years. A minimum of five workers must be hired to qualify for the credit. The credit is effective for people hired on or after January 1, 1986. | | | | | Interest Deduction: | | Financial institutions are not taxed on the interest received on loans for development within an Enterprise Zone. | | | | | Contribution Deduction: | | Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a designated Zone organization from taxable income. | Tax Increment Financing Tax Increment Financing (TIF) is a powerful economic development tool available to Illinois municipalities. It can generate the funds necessary for a municipality to catalyze private development in blighted or conservation areas through property acquisition, infrastructure extensions or other developer assistance. TIF does this not through additional taxes, but by re-directing where incremental property tax revenues go. Normally, property taxes are collected by the county and distributed to the city, township, school district, etc. When a TIF district is in place, however, a base level of property tax assessment is established. Increased revenues generated by increases in that assessed value, due to expansions, improvements, or new developments within the district are directed to a redevelopment fund, established and controlled by the city. These funds can then be used for qualified redevelopment costs within the district. The municipality can make improvements as the money becomes available. They can reimburse a private developer for qualified costs that are incurred in the redevelopment of the district, or it can borrow against the future revenues in order to make large scale improvements today. Once the district is established, it remains for 23 years unless the city terminates it earlier. All Illinois municipalities have the authority to create TIF Districts under the Illinois Tax Increment Reallocation Act and many have used it to great advantage. Municipalities can use tax increment revenues for all of the following: -
Studies, surveys, redevelopment plans, etc; -
Property assembly costs; -
Construction of public works or improvements; -
Financing costs; -
A taxing district capital costs resulting from the redevelopment project; -
Relocation; -
Payment in lieu of taxes; -
Job training; -
Up to 30% of interest costs incurred by the developer. Municipalities can establish a TIF District by ordinance after: -
Providing proper notice, -
Convening a joint review board, -
Holding a public hearing, -
Making all necessary findings, and -
Adopting a redevelopment plan. TIF Maps Downtown/Central Area Redevelopment Project Area Route 127 / I-70 & IPC Redevelopment Project Areas Industrial Park Conservation Area No. 2 Utility Maps Howard Wolf Park Utility Map with Landscape Howard Wolf Park Utility Map without Landscape |
